AUTHORIZING FIVE-YEAR FIBER AND TOWER SPACE LEASE AGREEMENT WITH BUG TUSSEL WIRELESS, LLC

RESOLUTION NO. _____ - 2019

AUTHORIZING FIVE-YEAR FIBER AND TOWER SPACE LEASE AGREEMENT WITH BUG TUSSEL WIRELESS, LLC

Fiscal Impact: [ ] None [X] Budgeted Expenditure [ ] Not Budgeted

Background: Sauk County owns and maintains a tower and fiber optic network throughout the county. The county leases tower space and dark fiber on the county-owned network to provide revenue to offset the original build and update to the network costs. Bug Tussel Wireless LLC is currently a lessee of Sauk County, and is seeking a five-year contract. The five-year contract is broken out into three separate contracts. Contract one (1) will be for leasing two (2) strands of fiber throughout the county’s fiber network. Contract two (2) will be for leasing tower and ground space at one specified elevation that is assignable to AT&T for the First Net public safety network. Contract three (3) will be for leasing tower and ground space at one specified elevation to be used for the Bug Tussel Wireless and Broadband networks. A new contract is being drafted with input from Sauk County Corporation Counsel’s Office, the Buildings Services Facilities Director, and Sauk County Communications Technician. The finalized contracts will take effect on October 1st, 2019, so long as both parties agree and will run for a length of five years for the initial term. After contract approval by both parties, Sauk County is expecting a total revenue of $2.3 million over the five-year contract.

NOW, THEREFORE, BE IT RESOLVED, that the Sauk County Board of Supervisors, met in regular session, hereby authorizes a fiber lease with Bug Tussel LLC, a tower and ground space lease to be assigned to AT&T, and a tower and ground space lease with Bug Tussel LLC signed and dated upon agreement of both parties, until September 30, 2023; and

BE IT FURTHER RESOLVED, that the Sauk County Board Chair is hereby authorized to sign the individual contract agreements with Bug Tussel Wireless through September 30, 2023;

For consideration by the Sauk County Board of Supervisors on September 17, 2019.

Respectfully submitted,

___________________________________               ___________________________________

Scott Von Asten, chair                                     John dietrich

___________________________________                   ___________________________________

shane gibson                                                         carl gruber

BRANDON LOHR

FISCAL NOTE: Based off the contract projections, Sauk County will receive revenues up to $ 2.3 million over the five-year contract term, which will help offset future tax levy for maintenance of the Communications Infrastructure.

MIS NOTE:   No MIS impact.

BUG TUSSEL WIRELESS 2019-2023 CONTRACT

Bug Tussel Contract

2019

2020

2021

2022

2023

Total

Shelter Lease

 $96,768.00

 $98,703.36

 $100,677.43

 $102,690.98

 $104,744.80

 $             503,584.57

Antenna Lease

 $118,800.00

 $121,176.00

 $123,599.52

 $126,071.51

 $128,592.94

 $             618,239.97

Lease Total/YR

 $215,568.00

 $219,879.36

 $224,276.95

 $228,762.49

 $233,337.74

Contract Total:

 $          1,121,824.54

Bug Tussel Assignable

2019

2020

2021

2022

2023

Total

Shelter Lease

 $ 96,768.00

 $ 98,703.36

$100,677.43

 $102,690.98

 $ 104,744.80

 $             503,584.57

Antenna Lease

 $ 54,000.00

 $ 55,080.00

 $ 56,181.60

 $ 57,305.23

 $  58,451.34

 $             281,018.17

Lease Total/YR

 $150,768.00

 $153,783.36

 $156,859.03

 $159,996.21

 $ 163,196.14

Contract Total:

 $             784,602.74

Bug Tussel Fiber

2019

2020

2021

2022

2023

Total

Shelter Lease

 $ 7,560.00

 $ 7,711.20

 $  7,865.42

 $  8,022.73

 $ 8,183.19

 $               39,342.54

Fiber Lease

 $ 78,639.91

 $ 80,212.71

 $ 81,816.96

 $ 83,453.30

 $ 85,122.37

 $             409,245.25

Lease Total/YR

 $ 86,199.91

 $ 87,923.91

 $ 89,682.38

 $  91,476.03

 $     93,305.56

Contract Total:

 $             448,587.79

Grand Total

 $          2,355,015.07